factors Of Production Flashcards
(13 cards)
What are the four factors of production?
- Land
- Labour
- Capital
- Enterprise
These factors are essential for producing goods and services.
Define ‘Land’ in the context of factors of production.
Resources that come from the natural environment.
Examples include minerals, animals, and water.
What does ‘Labour’ refer to in economics?
The physical or mental work of people.
Examples include builders, factory workers, and cashiers.
What is meant by ‘Capital’ in the factors of production?
Long-lasting human-made objects used to produce goods and services.
Examples include factories, machinery, and tools.
Who or what is classified as ‘Enterprise’ in the factors of production?
The creative individuals who combine the other resources to produce products.
Examples include Steve Jobs (Apple) and Elon Musk (Tesla).
What is the definition of ‘Economics’?
The study of how societies use scarce resources to produce valuable commodities and distribute them among different people.
It includes concepts like needs, wants, goods, and services.
Fill in the blank: ‘_______ are items that are produced to satisfy human wants.’
[Goods].
Goods are tangible items, whereas services are intangible.
Fill in the blank: ‘_______ are activities performed to satisfy human wants.’
[Services].
Services include actions like teaching, cleaning, and healthcare.
True or False: Scarcity refers to the unlimited availability of resources.
False.
Scarcity refers to the limited availability of resources in relation to the unlimited wants of individuals.
What are ‘Producers’ in economics?
Individuals or entities that create goods and services.
They use the factors of production to generate products.
What are ‘Consumers’ in economics?
Individuals or entities that purchase and use goods and services.
They drive demand in the economy.
How can students investigate the factors of production?
By constructing Cornell Notes and identifying the factors used to make a specific good.
This can be part of a classroom activity.
What is the purpose of the activity on factors of production?
To research and develop skills related to the production process and resource utilization.
